Healthcare of Ontario Pension Plan provides Home Capital with a $2 Billion Line of Credit

Home Capital Group Inc. (“The Company” TSX: HCG) yesterday announced the resignation of Jim Keohane from the boards of the Company and its subsidiaries, Home Trust and Home Bank.

Mr. Keohane is President and CEO of the Healthcare of Ontario Pension Plan (HOOPP), which yesterday agreed to provide a $2 billion line of credit to Home Trust.

Mr. Keohane advised the Company yesterday that due to the transaction, it would no longer be appropriate for him to serve as a director given the potential conflicts that might arise from the new relationship.

“We thank Jim for his service and the insights he brought to the board,” said Kevin Smith, Chairman of Home Capital Group. “We are sorry to see him go, but we all understand the importance of avoiding the potential for future conflicts given the important business arrangement we announced today with HOOPP.”

For that reason, Mr. Smith has also advised HOOPP that he will no longer serve as a director of the pension plan.

The Company will announce plans to deal with the resulting vacancy on the Home Capital board in due course.

Caution Regarding Forward-looking StatementsThis press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to the Home Capital’s 2016 Annual Report, available on Home Capital’s website at www.homecapital.com, and on the Canadian Securities Administrators’ website at www.sedar.com, for Home Capital’s Caution Regarding Forward-looking Statements.

About Home Capital Group Inc.Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.

WATCH: It was the first day of liquidation sales for most Sears stores in Canada slated for closure. But as Andrew Cromwell reports, even as they looked for bargains, shoppers were aware thousands of people will be out of work in the coming months.

Source: Global News

Related

Markets are now assigning an 84% chance of a July rate hike by the Bank of Canada after GDP grew for the sixth straight month and Canadian business leaders reported the strongest outlook since 2011. But TD Economist Brian DePratto says July may still be too early for the Bank of Canada to pull the trigger.